The Kansas-based producer of grain-derived starches, proteins and food-grade alcohols has been forecasting a turnaround in its fortunes since October, when it said it hoped to see the fruits of a new business strategy, focusing more on value-added ingredients like dietary fiber, protein isolates and concentrates, and textured proteins, and moving away from commodity-based ingredients.
The company has said that fiscal 2009 was a “difficult year”, having recorded a huge net loss of $69.1m, compared to an $11.7m net loss during 2008 – which had been the company’s first net loss in a decade. It blamed much of this on restructuring costs, as it worked toward pushing its product portfolio in a new direction.
MGP Ingredients’ president and CEO Tim Newkirk said: "In the first quarter of this fiscal year, we essentially completed our business transformation process, followed in the second quarter by the strengthening of our balance sheet. The solid profitability we continued to produce in the second quarter is indicative of the tremendous strides we have made and the potential that lies before us. I am very excited and pleased that 1) we have made such remarkable progress in such a relatively short period of time, and 2) we have a sound structure in place, strategically and organizationally, to grow our business in a more consistently profitable manner."
The company has also cut debt from $38 million at the end of the current year's first quarter to $11 million by the end of the second quarter.
Sales were $44,672,000, down 39 percent from $73,242,000 in the same period a year ago.
MGPI said that most of this decline could be attributed to the company's planned reductions in sales of fuel grade alcohol and commodity ingredients.